Business Environment and International Business MCQs

Question 1

A company that has a worldwide approach to markets and production is known as

Accepted Answer

Multinational company

Answer

Multinational enterprise

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Multinational efficiency

Answer

None of these

Question 2

The Age of Discontinuity' (1969) has been authored by

Accepted Answer

Peter F. Drucker

Answer

John Drydon

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Cyril Debydeen

Answer

None of these

Question 3

In the two good Ricardian Trade Model, complete specialization in production occurs in fee trade equilibrium because

Accepted Answer

the production possibility frontier satisfies constant opportunity cost

Answer

the production possibility frontier satisfies increasing opportunity cost

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there are diminishing returns to the factor of production

Answer

there are increasing returns to the factor of production

Question 4

Consider the following statements. Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of sender/ distributor. Reason (R): FEMA differs from the earlier exchange regulation Act FERA with regard to penalties and punishment in case of violation of the Act.

Accepted Answer

(A) and (R) both are correct and (R) is the right explanation of (A)

Answer

(A) is correct but (R) is not correct

Answer

(A) and (R) both are correct but (R) is not the right explanation of (A)

Answer

(A)and (R) both are incorrect

Question 5

Match the following. List-I (Concepts) List-II (Features) a. Free trade 1. Its value is fixed in gold b. International liquidity 2. Removes tariffs and non-tariff barriers c. Regional economic integration 3. Aggregate stock of internationally acceptable assets d. Special drawing rights 4. It permits trading partner's mutual gains from trade of goods and services

Accepted Answer

a-4, b-3, c-2, d-1

Answer

a-3, b-1, c-4, d-2

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a-2, b-1, c-4, d-3

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a-3, b-4, c-1, d-2

Question 6

Which of the following is/are not the objective of IMF?

Accepted Answer

Both B and C

Answer

Removal of disparities in international payment

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Imposition of trade tariff

Answer

Imposition of exchange control

Question 7

Consider the following statements.

Accepted Answer

Both A and B

Answer

Fiscal policy is composed of policy decisions relating to entire financial structure of the government including tax revenue, public expenditures, loans, transfers, debt management, budgetary deficit, etc. that is taken care of by Ministry of Finance

Answer

The objective of monetary policy is to ample liquidity in the market so that price stability and economic growth are taken care of

Answer

None of the above

Question 8

Out of the following, which four benefits are available to host countries from MNCs? (1) Transfer of technology (2) Learning of business mannerism (3) Strategic information sharing (4) Creation of jobs (5) Entertainment (6) Better utilization of resources (7) Enhancing social contacts (8) Improved competition in local economy

Accepted Answer

1, 4, 6 and 8

Answer

1, 3, 5 and 7

Answer

2, 4, 6 and 8

Answer

3, 6, 7 and 8

Question 9

Which of the following is not an element of the micro environment of business?

Accepted Answer

Trade Policy

Answer

Suppliers

Answer

Competitors

Answer

Public